IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-01314345.html

The Microeconomic Dimensions of the Eurozone Crisis and Why European Politics Cannot Solve Them

Author

Listed:
  • Christian Thimann

    (Axa - AXA, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper argues there are two main problems holding back private sector employment creation in the stressed eurozone countries. First, there is a persisten competitiveness problem due to high labor costs relative to underlying productivity. Over the first ten years of the euro, wage developments relative to productivity diverged strongly across the eurozone. Second, widespread structural barriers make job creation in these coun- tries far more arduous than in many other advanced economies, and even more arduous than in some key emerging economies and formerly planned economies.

Suggested Citation

  • Christian Thimann, 2015. "The Microeconomic Dimensions of the Eurozone Crisis and Why European Politics Cannot Solve Them," Post-Print halshs-01314345, HAL.
    • Handle: RePEc:hal:journl:halshs-01314345
    DOI: 10.1257/jep.29.3.141
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Burda, Michael C., 2016. "The German labor market miracle, 2003-2015: An assessment," SFB 649 Discussion Papers 2016-005, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    2. repec:hum:wpaper:sfb649dp2016-005 is not listed on IDEAS
    3. Ramon Xifré, 2020. "The Political Value of Internal Devaluation in the Euro Area Crisis," Global Policy, London School of Economics and Political Science, vol. 11(4), pages 466-477, September.
    4. Milivojevic, Lazar & Tatar, Balint, 2021. "Fixed exchange rate - a friend or foe of labor cost adjustments?," IMFS Working Paper Series 152, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    5. Ignatov Augustin, 2018. "Towards a Confident Europe: Fostering European Foreign Policy as a Premise to Enhanced European Economic Security & Competitiveness," Global Economy Journal, De Gruyter, vol. 18(3), pages 1-13, September.
    6. Burda Michael C. & Seele Stefanie, 2017. "Das deutsche Arbeitsmarktwunder: Eine Bilanz," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 18(3), pages 179-204, October.
    7. Jan Skope?ek, 2021. "Impact of Establishing the Eurozone on Economic Performance," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 9(2), pages 57-74, November.
    8. Pasquale Tridico & Riccardo Pariboni, 2018. "Inequality, financialization, and economic decline," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 41(2), pages 236-259, April.
    9. Ramon Xifré, 2021. "Non‐Price Competitiveness Factors—A simple measure and implications for the five largest euro area countries," The World Economy, Wiley Blackwell, vol. 44(11), pages 3091-3110, November.
    10. repec:hum:wpaper:sfb649dp2017-022 is not listed on IDEAS
    11. Fredrik Heyman & Pehr-Johan Norbäck & Lars Persson, 2019. "The Turnaround of the Swedish Economy: Lessons from Large Business Sector Reforms," The World Bank Research Observer, World Bank, vol. 34(2), pages 274-308.
    12. Mr. Bas B. Bakker, 2015. "Employment and the Great Recession: The Role of Real Wages," IMF Working Papers 2015/229, International Monetary Fund.
    13. Donato Masciandaro & Davide Romelli, 2018. "To Be or not to Be a Euro Country? The Behavioural Political Economics of Currency Unions," BAFFI CAREFIN Working Papers 1883, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    14. Maria-Grazia Attinasi & Doris Prammer & Nikolai Stähler & Martino Tasso & Stefan van Parys, 2019. "Budget-Neutral Labor Tax Wedge Reductions: A Sumulation-Based Analysis for the Euro Area," International Journal of Central Banking, International Journal of Central Banking, vol. 15(4), pages 1-54, October.

    More about this item

    Keywords

    ;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-01314345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.